Omaha daily bee., 1887-04-03

OF penalties provided Tor BY the Interstate
commerce law, said their roads will be com.
PEELED to largely increase their rates on the
9TH inst This, they say, would destroy the
whole system of rates upon which their
southern manufacturing industries have been
founded, and paralyze and disorganize trade
centers through which wholesale dealers.
have established their business. ]
Continuing, the committee said: 1--WE
submit herewith schedule of the rates of
the Southern Railway and Steamship associ-
alton to which we have referred. We also
invite your attention to the accompanying
comparative statement which we have pre-
pared of the present rates by which IS shown
the great increase which will occur in rates
to the principal points if the railway put in
force the rates they now understand the new
law will require The showing made by the
comparative statement may be Judged by the
fact that rates from Now York to Atlanta,
Montgomery, Selma, Rome, Dalton and
Chattanooga will be increased from STA to
Sl.4l to Macon from Sl.09 to Sl.35: to Au-
gusta, from .96 to Sl.2l; from Cincinnati. to
Augusta, from 81 OF to sl.46. The chairman
of the commission (Judge Cooley remarked
interrogatively that he understood the appi-
cation which has been made by the railroad
companies was to charge less tor long than
for short hauls. Governor Bullock
responded aflirmatively. At present, queried
the chairman, the railroads are charging less
for longer than for shorter distances? Gov
ernor Bullock said this was the case where it
was necessary to meet circumstances of wa
ter transportation. The chairman asked the
opinion OF the committee with respect to the
authority OF the commission to make the or.
der asked of them. Governor Bullock replied
that, as they read the provisions of the fourth
section, they understood that the commission
had the authority. The railroads, he added,
had informed them that unless. they made
their rates Mt once they would be liable to
penalties under the law, Contracts had been
made by merchants three months hence based
upon the rates which prevailed at the time.
Now to suddenly raise these rates would
prove disastrous. a brief colloquy, during
which: in reply to queries by Colonies Walker
and Morrison, the position of the committee
in respect to some details was elaborated,
ended the hearing. The whole proceeding
was an intormality, the hearing being
granted at this time as favor to the gentle
men who had come from Il distance to pre-
sent their case. No formal consideration of
this question or any other will be undertaken
before the 5th inst. on which date the law
goes into effect.
At 3 o'clock this afternoon a hearing was
given to representatives of the Southern
Railway and Steamship association. They
were fifteen or twenty in number. Milton
II smith, vice-president of the Louisville Il
Nashville railroad was selected as spokes-
man of the delegation and addressed the
commission. He said that they were present
to apply for authority to charge less for the
transportation OF property between comDeti-
tive points when they were such that no
shipments could be proiitably made. This
discovery gave the railroad people their first
lesson in the art of promoting transporta-
ton" When the different lines were com
pleted to points where thev came into COM
petition with each other and with water lines
railroad managers first awoke to the fact
that they could compete with water lines
and here first was presented the question of
accepting less for a long than for short
haul. The discovery was made which was
and is seemingly paradox. 1t was that
strlttir p0ull bQ tranSnOrtpd and Weld
profit at rate that is less than the average
cost; that additional traffic secured at rate
that yielded a revenue in excess OF
additional cost of carriage, though
a profit" Smith contended that the rates
fixed by the Louisville & Nashville company
are not in violation OF the act OF congress.
If 1t prohibtes from charging less for a longer
distance than for shorter, where the condi-
tons are substantially similar, then, he ar.
gued. they were authorized to charge less for
longer than for shorter distance, which
conditions are substantially diSsimilar, pro-
points are just and reasonable. Some of his
associates, representing other large corpora
tions. did not agree with him, but held that
under no conditions could any greater
charge be made for a short than for longer
haul unless authorized by this commission.
Smith said his company had received notices
from all the great lines of the north that
from and after the 5th inst. all existing
traffic agreements must cease This was due,
he explained. by the difference in the inter-
probation of the law These roads based
their action upon the refusal OF the Louis.
rates beow its through rates hold
ing that they would be liable as par
ttcRantts tsran in any penalties fdt, incurred
able length the circumstances which led
northern trunk lines to make such con-
struction of the law. They were not subject
to such an extent to water competition and
their interpretation was the only one that
was advantageous to them. They would ap-
pear before the commission and advocate an
Interpretation which would benefit them but
bankrupt Us. Smith did not believe there
was any reason for the present agitation.
Surely carriers were not to be punished for
the violation OF law which they could not
understand. Ii was clear now that the com
mission should have been organized and
should have heard these questions and de-
cided them earlier. If the anticipated changes
were enforced at once commercial distress
would at least be threatened.
General Alexander, president of the Gen-
tral Georgia road, set for the reasons which
led his lines to give lower rates from New
York to Macon and Montgomery than to
Mobile and New Orleans. The latter points
were reached by competitors who were en-
tirely independent OF the commission, not
more than two or three of the lines cOmpos
ing the association were paying. His own
line was one of the paying ones, but did not
pay eXorbantly. If compelled to reduce in
teTmeulate rates DelOW all water rates 10 New
Orleans his company would lose $40 In
local traffic for every 50 gained in through
traffic.
Edgar W. johnson, general consul for the
east Tennessee, Virginia and Georg Ia rail-
road. said it was very evident that the com
mission could not investigate questions pre-
sented and to be presented between now and
April 5, yet it was equally evident that un-
less relief was granted all commerce between
the north Rand south must end on the 9TH
since the northern roads would not risk the
penalties which might be incurred by iol.
lowing any other than their own interpreba-
ton of the law.
Henry Fink, vice president of the East
Tennessee, Virginia X Georgia road said u
rigid construction of the long ana short hauls
provision meant bankruptcy. This provision,
he was sure, was acOncessiOn 10 the popular
clamor to abstract sentiment Congress had
found necessary to put 1t in, but also found
1t necessary to empower the commission TO
suspend it. What kind of statutes were the
roads to file between now and the 9TH of
April? If they put up through rates to level
with local rates they would lose their traffic,
and that meant bankruptcy. If they put
down local rates they could never get them
back, and that, too, meant bankruptcy.
Several hours were spent by the commits
siOners Today in opening letters and giving
hasty informal glances at thSir contents,
after which they were passed to the acting
sesretary, Major Jones, for briehng, jacket
4 II. a H. H..